By now we all know that the U.S is in a recession or economic downturn. But the reality of what is going on has not hit many Americans, life as we know it will not be the same as in previous years. The things we would be able to buy, own, or afford are simply not possible anymore. Not to be negative or pessimistic, but the U.S will no longer be the same. That is not to say that we are not still a wealthy or privileged nation.

The reality of the situation is, the rich are getting richer, the poor are getting poorer, and the middle class is disappearing. There now seems to be a highway into poverty and there doesn't seem to be a road to get out of it anymore. The reality for retirees is a very bleak one, their interest rates have decreased on their retirement income from 5% to possibly 1 or 2%. There is no cost of living increase for the past 2 years on social security, so retirees are in a situation where expenses are increasing, their income is decreasing, and nobody wants to hire them because they are older.

Entrepreneurs need to step up to the plate and start small businesses, create jobs, and get things moving locally. But the sad thing is, Banks are not giving small business owners the loans that they need to create the businesses to hire the people to change what is happening in the United States. It's a very bad cycle we are stuck in.

So where does that leave you? Americans need to now adjust to the current economic climate. You need to live below your means, but within your means. It just might be that you may never own a home and you're going to rent. It's worth it to you because you want to sleep at night, you don't want to be slave to payments you can't afford. You're not going to see real estate sky rocket anytime soon if ever again and you're not going to see all the jobs come back over night. So we have to look at things differently, try to save, spend less, and look to the little things that make you happy.